auto · EICHERMOT
Eicher Motors
Eicher Motors: PE above historical average. NARROW LEADERSHIP regime.
Price
₹7,830.5
Price 2026-07-30
5 day
+3.73%
Short-term move
1 month
+10.70%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹206.9k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Eicher Motors (EICHERMOT) in the auto sector?”
Price chart
₹7,755
+38.87% over period
About Eicher Motors
Eicher Motors Limited, an automobile company, engages in the manufacture and sale of motorcycles and commercial vehicles in India and internationally. The company designs, develops, manufactures, assembles, and sells two-wheelers, as well as related parts and accessories; motorcycle accessories; protective and performance gears, and riding apparel products for men and women; and lifestyle apparel products and accessories. It also owns the Royal Enfield motorcycle brand that offers Classic 350, Bullet 350, Meteor 350, Hunter 350, Himalayan 450, Scram 440 ADV Crossover, Interceptor 650, Bear 650, Guerrilla 450 modern roadster, Continental GT 650, Super Meteor 650, and Shotgun 650 models. The company was founded in 1901 and is headquartered in Chennai, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -8.5% over 14 days) — not a reliable pattern.
52-week position
Trading at 95.1% of 52-week high
Technicals
RSI 14
72.2
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
37.5
86th pct · 7 quarterly points (limited history)
P/B
8.2
ROE
23.8%
Strong profitability — 23.8% return on equity
Market cap
₹206.9k Cr
Revenue growth
1910.0% YoY
Promoter
49.8%
52-week range
₹5,353 – ₹8,230
95.1% of high
RSI (14)
72.2
uptrend
vs 50 DMA
Above
DMA ₹7,376.73
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Eicher Motors scores 80/100 on fundamentals (strong). Eicher Motors: PE above historical average. NARROW LEADERSHIP regime.
Fundamental Score: 80/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 23.0% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 23.0% is strong margin-driven and stable. Net margin 23.5%, asset turnover 0.76x, leverage 1.3x.
What This Means
Net margin of 23.5% means the company keeps ₹23.5 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.76x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
42.4%
Operating
30.6%
Net
23.5%
Gross margin 42.4% → operating margin 30.6% → net margin 23.5%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.8x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 96.0x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 14.4% — strong cash generation. Business is self-funding.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| BAJAJ_AUTO Bajaj Auto | ₹11,432 | +1.3% | 26.3 | 28.1% | 3700% | ₹2.8L Cr |
| BOSCHLTD Bosch Limited | ₹41,550 | -1.6% | 44.6 | 19.4% | 1800% | ₹1.2L Cr |
| BHARATFORG Bharat Forge | ₹2,164.7 | -0.5% | 94 | 11.6% | 1750% | ₹1.0L Cr |
| HEROMOTOCO Hero MotoCorp | ₹5,325 | +4.4% | 17.4 | 28% | 3020% | ₹100.0k Cr |
| ASHOKLEY Ashok Leyland | ₹158.09 | +4.9% | 27.8 | 21.6% | 1740% | ₹96.4k Cr |
| EXIDEIND Exide Industries | ₹452.7 | +2.9% | 41.2 | 6.2% | 920% | ₹35.2k Cr |
| ESCORTS Escorts Kubota | ₹3,013.6 | +3.7% | 24 | 12% | 2140% | ₹32.8k Cr |
| ARE_AND_M Amara Raja Energy & Mobility | ₹906.85 | +4.1% | 17.2 | 11.6% | 1550% | ₹15.4k Cr |
| EICHERMOT Eicher Motors | ₹7,830.5 | +2.5% | 37.5 | 23.8% | 1910% | ₹2.1L Cr |
Tensions to watch
Promoter holding at 49.8% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹8222 (+5%)
Trend reversal confirmation
Breaks below ₹7439 (-5%)
Further downside risk
PE reverts to median of 35.1 (7 quarterly points (limited history))
Valuation normalization
Auto sector entering leadership
Sector rotation signal
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High revenue multiple. Market pricing in significant growth or margins expansion.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
